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vaieri [72.5K]
3 years ago
7

Using the tables above, if an investment is made now for $20,000 that will generate a cash inflow of $8,000 a year for the next

4 years, what would be the net present value (rounded to the nearest dollar) of the investment, (assuming an earnings rate of 10%)?a. $25,360 b. $5,360 c. $4,296 d. $352
Business
1 answer:
Allushta [10]3 years ago
8 0

Answer:

b. $5,360

Explanation:

Using a financial calculator with CF function, find the Net present value (NPV) of this projects cashflows;

Initial investment; CF0 = -20,000

Yr 1 cash inflow; C01 = 8,000

Yr 2 cash inflow; C02 = 8,000

Yr 3 cash inflow; C03 = 8,000

Yr 4 cash inflow; C04 = 8,000

and annual interest rate; I/Y = 10%

then compute net present value; CPT NPV = 5,358.924

Therefore, the NPV will be closest to $5,360

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This chapter discusses many types of costs: opportunity cost, explicit costs, fixed cost, variable cost, average fixed cost, and
melomori [17]

Answer: See explanation

Explanation:

In a pizza industry, the cost of the factory is a (fixed cost) only in the short run but not in the long run.

(Average fixed cost) is always falling as the quantity of output increases.

A cost that depends on the quantity produced is a (variable cost).

The term (opportunity cost) refers to all the things you must give up for taking some action.

The term (explicit cost) refers to costs that involve direct monetary payment by the firm.

(Average variable cost) is falling when marginal cost is below it and rising when marginal cost is above it.

4 0
2 years ago
Leon Jones worked in the warehouse of a large building supply company. One day he unexpected left for Fiji, never to return. His
In-s [12.5K]

Answer:

=> Automated Signature Verification System.

=> Tracking of workers' appointment by the personnel department.

Explanation:

Forgery is a kind of fraud in which one changes name, signature or anything pertaining to another person in order to deceive other people. Forgery is a fraud and it is a criminal offence that should be stop in the society. Just as it is in the question above the supervisor is forging Leon’s name in order to be able to collect the money of someone that is no more working.

The two control techniques to prevent or detect this fraud scheme are given below:

=> Automated Signature Verification System : the company should have Automated Signature Verification System for their employees and customers so that with it they can easily detect forgery fraud and the person affected can be able to recover his or her losses.

=> Tracking of workers' appointment by the personnel department: the personnel department should track the appointment of each of their employees in any organization.

Other ways are to Install biometric time cards and make sure payroll record are verified and updated before payment.

4 0
3 years ago
Two​ countries, A and B​, both are currently in recession. The values of the MPS for A and B are 0.1 and 0.5 respectively. The g
aksik [14]

Answer:

Explanation:

The policy of tax cut will be less effective in country B than in country A since the value of the tax multiplier is lower in country B.

The multiplier effect refers to the increase in final income arising from any new injections.

Calculating the Multiplier Effect for a simple economy

k = 1/MPS

A = 1/0.1 =10

B= 1/.5=2

3 0
3 years ago
"An investment advisor has recommended a $50,000 portfolio containing assets R, J, and K; $25,000 will be invested in asset R, w
lesantik [10]

Answer:

The expected annual return of Portfolio is 12.00%

Explanation:

The portfolio return is calculated by multiplying the individual security return with weight of individual security in the portfolio. We have three securities R, J and K with expected return on 12%, 18% and 8% with weight of 50%, 20% and 30%. Through multiplying them we get individual return of security that is 6%, 3.6% and 2.4%. The weighted average portfolio return is 12%

8 0
3 years ago
Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transaction
Elza [17]

Answer:

See explaination and attachment

Explanation:

Stockholders' equity is the amount of assets remaining in a business after all liabilities have been settled. It is calculated as the capital given to a business by its shareholders, plus donated capital and earnings generated by the operation of the business, less any dividends issued.

Balance Sheet is a statement of the assets, liabilities, and capital of a business or other organization at a particular point in time, detailing the balance of income and expenditure over the preceding period.

See attachment for the step by step solution of the given problem.

8 0
3 years ago
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